BuzzFeed, a once-quirky upstart that won a Pulitzer Prize, is now facing trouble due to the punishing economics of digital publishing. The company has laid off 15% of its staff and is shutting down its news division (nytimes.com). CEO Jonah Peretti wrote in a memo to employees that “the company can no longer continue to fund BuzzFeed News as a standalone organization” (cbsnews.com). The decision is part of a larger effort to turn the struggling media group around and to squeeze profits (axios.com).
BuzzFeed News was a pioneer of the digital news landscape over the past decade and defined the 2010s (forbes.com). However, despite its impact, BuzzFeed News is not profitable, and the company is not able to turn a significant profit through it (variety.com). This move comes after the company already announced a 15% reduction in staff, and it is not the only digital media company facing tough financial pressures (vox.com).
BuzzFeed News also gained notoriety for its publication of the Steele Dossier during the 2016 US Presidential Election (mediaite.com). The company’s CEO, Jonah Peretti, said in the memo that the layoffs and the decision to shut down BuzzFeed News are necessary “to ensure a sustainable future” for the company (usatoday.com).
While BuzzFeed News is shutting down, the fate of other digital media companies, such as Vice World News, remains uncertain (wsj.com). BuzzFeed News was an industry leader and an organization that produced some memorable journalistic moments. However, the digital media landscape has changed, and companies like BuzzFeed News have not been able to keep up (theatlantic.com).
In conclusion, BuzzFeed News is shutting down as part of a larger effort to turn the company around as it faces the challenges of the digital media landscape.
